By Ayo Kehinde
The Securities and Exchange Commission (SEC) has warned Nigerians against the growing number of unregistered online investment schemes being promoted across social media platforms, describing many of them as Ponzi operations designed to defraud unsuspecting investors.
In a public notice dated May 8, 2026, and shared via its official X handle, the Commission said several platforms offering guaranteed or unrealistic returns are not registered or authorised to operate in Nigeria’s capital market.
According to the SEC, the schemes are being aggressively marketed on WhatsApp, Instagram, TikTok, Telegram, Facebook, and other digital platforms to lure members of the public with promises of quick profits.
“The attention of the Securities and Exchange Commission has been drawn to the increasing promotion of unregistered online investment schemes on social media applications and websites,” the regulator stated.
The Commission noted that many of the operators exhibit characteristics of Ponzi or prohibited investment schemes, while some also provide unauthorised investment advisory services.
SEC urged Nigerians to avoid investment platforms promising unrealistic returns, warning that such schemes often expose investors to fraud and severe financial losses.
It stressed that only entities registered with the Commission are legally permitted to offer investment and advisory services in Nigeria.
The regulator advised members of the public to verify the registration status of any investment company or platform through its official fintech and capital market operator databases before committing funds.
The latest warning comes amid increased regulatory scrutiny of suspected fraudulent investment operators.
In recent years, the SEC has issued alerts against firms such as Glorious Wealth Fund (GWF), Shalom Coin (SHLM), and Silverkuun Investment Cooperative Society for allegedly operating without regulatory approval.
The commission reiterated that the Investments and Securities Act (ISA) 2025 empowers only registered entities to solicit investments in Nigeria, adding that public awareness and due diligence remain key to combating financial scams.
